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Medexus Strengthens Balance Sheet with US$18 Million Commitment Under Accordion Facility
Medexus expects net proceeds, together with projected cash on hand, to fully satisfy convertible ...
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"Medexus Strengthens Balance Sheet with US$18 Million Commitment Under Accordion FacilityMedexus expects net proceeds, together with projected cash on hand, to fully satisfy convertible debentures in cash at maturity in October 2023Toronto, Ontario and Chicago, Illinois--(Newsfile Corp. - September 5, 2023) - Medexus Pharmaceuticals (TSX: MDP) (OTCQX: MEDXF) today entered into an amendment to the company's senior secured credit agreement with BMO as agent and lender. The amendment provides for a US$18 million increase in BMO's term loan commitment under the existing facility's previously disclosed accordion feature, among other amendments. Medexus intends to apply the full US$18 million, net of any transaction expenses, toward repayment of the company's convertible debentures upon their maturity on October 16, 2023.\"We are pleased to extend our strong partnership with BMO and bolster our liquidity position as we approach the October 2023 maturity of our convertible debentures,\" commented Ken d'Entremont, Chief Executive Officer of Medexus. \"BMO's decision represents a vote of confidence in Medexus' go-forward business plan and capital strategy.\"\"These additional senior debt proceeds further improve our cash position and enhance our flexibility as to how we satisfy the upcoming maturity payment in respect of the remaining C$39.8 million principal amount of convertible debentures in October,\" added Marcel Konrad, Chief Financial Officer of Medexus. \"We now expect that we will be in a position to make the maturity date payment entirely in cash, in the event we elect to do so.\"Borrowings under the BMO credit facilities bear interest at a rate of adjusted term SOFR plus a margin determined quarterly based on Medexus's consolidated leverage ratio. At June 30, 2023, before giving effect to the amendments described in this news release, US$35 million of the term loan and US$3.5 million of the revolving loan were outstanding, with a weighted average interest rate of 9.02%. As of the date of this news release, and before giving effect to the additional US$18 million to be drawn in connection with the maturity of the convertible debentures, the weighted average interest rate is 8.68%.Additional information about the terms of the BMO credit agreement and Medexus's convertible debentures (including a copy of the related indenture) is ...